Research On Big Data Business Investment Decision And Supply Chain Coordination Mechanism

With the development of the Internet,Mobile Internet,Internet of Things(IoT),Artificial Intelligence(AI),etc.,data has exploded.At the same time,the maturity of technologies such as Cloud Computing and Virtual Storage reduces the costs of storing and analyzing data.These indicate the arrival of the Big Data era.Under the background of the Big Data era,the explosive growth of data brings new opportunities and challenges to traditional enterprises in the supply chain,apparently traditional enterprises in the supply chain need the transformation and upgrading.This paper comprehensively analyzes the benefits of Big Data business investment for the enterprises in the supply chain,and introduces Big Data business as the main research line.Considering the impact of Big Data business investment in the supply chain on potential market demand,inventory inaccuracy,and internal costs,our study aims to provide some new Big Data business investment modes and coordination mechanism for enterprises in the supply chain.Based on the above background and the existing deficiencies in quantitative research on Big Data and supply chain management,this paper takes Big Data business investment as the research object,two supply chain models were constructed.In this paper,the quantitative research methods were used to discuss the decision-making of Big Data business in the supply chain.Furthermore,the impacts of Big Data business on the profit of the supply chain and its members were analyzed,and the supply chain coordination mechanism based on Big Data business was explored,thus,the specific research content is as follows.1.Big Data business investment decision-making and coordination mechanism in supply chain with the consideration of the potential volatile demand.Our study considers that enterprises in the supply chain could tap potential consumers and expand potential market demand,as well as improve the operations efficiency of enterprises and reduce the internal costs of enterprises by investing in Big Data business,five modes of Big Data business investment were proposed.What's more,the impacts of Big Data business on the profit of the supply chain and its members were analyzed,and a coordination scheme was proved to achieve supply chain coordination.2.Big Data business investment decision-making and coordination mechanism in supply chain with the consideration of the inventory inaccuracy.Our study considers that enterprises in the supply chain could realize the digitization and visualization of the supply chain so as to improve the accuracy of inventory and reduce the misplacement of products which would increase the ratio of products sold normally,as well as improve the operations efficiency of enterprises and reduce the internal costs of enterprises by investing in Big Data business,five modes of Big Data business investment were proposed.Furthermore,the impacts of Big Data business on the profit of the supply chain and its members were analyzed,and a coordination scheme was proved to achieve supply chain coordination.Our results indicate that when the potential market demand exceeds a certain scale,or the ratio of products sold normally exceeds a certain range,if the Big Data cost met a certain threshold,the retailer or the manufacturer investing in Big Data business individually could increase its own profit,which would create a positive externality for the other supply chain member;the profit of the supply chain and its members would increase whether supply chain members choose to invest in Big Data business individually or jointly.Moreover,a reasonable cost allocation of Big Data business between supply chain members was provided when both supply chain members invest in Big Data business.In addition,after supply chain members investing in Big Data business jointly,revenue-sharing contract could be applied to coordinate the supply chain perfectly.